The measure aims to boost domestic production and raw material supply. Last year, the country already removed tariffs on several critical minerals.
India plans to eliminate import tariffs on waste and scrap of twelve critical minerals in order to ensure the availability of these resources for domestic production. This measure is outlined in the budget proposal for this year and the next. Among the affected materials are antimony, cobalt, cadmium, rhenium, and copper, as explained by Finance Minister Nirmala Sitharaman on Saturday (PDF). Additionally, tariffs on the scrap and waste of lithium-ion batteries will be abolished. The government also plans to exempt various capital goods used in the manufacturing of these batteries, which are essential for mobile phones and electric vehicles, from these duties. Furthermore, the government intends to implement measures to recover critical minerals from mining residues or by-products, as the minister added.
Last year, India had already removed tariffs on 25 critical minerals in an effort to boost economic growth and facilitate the transition to clean energy (we reported). Just last week, the country announced state investments of nearly $2 billion to support projects from mining to the circular economy, aiming to strengthen its raw material autonomy. Nearly simultaneously, Prime Minister Narendra Modi urged the domestic industry to expand its value chains. For the emerging economy, it would be unacceptable to export raw materials and then import the products made from them, Modi said.
Photo: SafakOguz via Canva
